Last Updated on October 14, 2021 by Lamudi
So you’ve decided to stop renting and make the leap of buying your own house. What’s next?
Purchasing a house is one of the most significant decisions you’re going to make in your life. But it doesn’t stop there, deciding to buy your house is just the beginning of an overwhelming process which starts with a housing loan application.
Many Filipinos, however, are taken aback when it comes to housing loans due to the usual impression that these are only for the chosen few, those with huge savings or skyrocketing incomes. But with the growing demand for housing loans in the Philippines, financial institutions like Metrobank, have made it easier to provide financing for every Filipino’s most exciting purchase in their lives. This well-known bank has paved a way to cater more of the hardworking Filipinos’ dream to own a house while still ensuring compliance with strict loan regulations and guidelines. They offer flexible payment schemes and various promotions to accommodate every type of property seeker.
But first, you need to know how qualified are you to take out a loan.
Minimum Qualifications For Housing Loan Applicants
You should be at least 21 years old at the time of application and not older than 65 years upon loan maturity;
A Filipino citizen or foreigner with a permanent resident visa for the Philippines;
If based in the Philippines, one must be self-employed or a fixed income earner; must be employed for at least two years with current employer and earning at least P30,000 for self-employed individuals, or have the same Gross Monthly Family Income (GMFI) for fixed income earners;
If working abroad, the applicant can be a land-based or sea-based overseas Filipino worker in active employment (with an officer position), or have renewed or signed a contract at the time of loan application;
For land-based OFWs employed less than two years, they should be employed locally in the last five years prior to becoming an OFW, or as an OFW with different employers, or a combination of local and overseas employment;
For sea-based OFWs, they should have completed a combined contract duration of 24 months with the current agency, or 48 months inclusive of previous agencies and earning at least $1,000 for self-employed individuals and fixed income earners.
However, meeting all of these requirements still won’t guarantee approval for your housing loan. But there are a few things you can do to prepare and yourself and get your finances in order.
Ensure Steady Income
Banks heavily rely on the fact that you have a stable income source in order to have a basis of approving your application for a housing loan. This will ensure the bank that you really are capable of paying your debt. It doesn’t matter if you’re an employee, self-employed, or running a business, a steady income stream is essential for your housing loan approval. Banks set a minimum monthly income for loan applicants and in the case of Metrobank, their minimum is at least PHP 30,000.
Pay Your Bills On Time
After ensuring your capability to pay your debts by your income source, banks then get into how responsible you are in paying them. This is reflected in your current bills payment practice. So start paying all your bills on time to make your application for a loan even more attractive to lenders.
Eliminate Your Debts
Banks usually look into your credit history and having a huge amount of debt is highly discouraging. Start cleaning off your debt before applying for a home loan to increase your chances of getting approved. You can start by paying a little bit more than your monthly minimum to fast track your debt elimination.
Do Your Research
With a lot of promising financial institutions that offer housing loans, choosing the best one could be a little bit tricky. So commit a fraction of your time for some research. Metrobank, one of the leading banks in the Philippines, offers a simple and convenient housing loan application. With their competitive interest rates, they can surely provide you the best value out of your hard earned savings. Check out Metrobank’s offers at www.metrobank.com.ph.
This article originally appeared in Philippine Daily Inquirer Property. Edits were made by the Lamudi.com.ph editor.
